Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: TUESDAY, August 31, 1993 TAG: 9308310251
SECTION: VIRGINIA PAGE: C1 EDITION: METRO
SOURCE: MICHAEL STOWE STAFF WRITER
DATELINE: BLACKSBURG LENGTH: Medium
John Engstrom was removed as head of culinary services after allegations of poor management practices and improprieties regarding overtime pay were leveled against the department.
A special audit looking at systems, processes and people in culinary services was reviewed by Tech's Board of Visitors in executive session Monday, but because it involved personnel actions the university issued only a vague summary of its findings to the public.
The audit's findings spoiled a prediction Engstrom made when the investigation began in December that his department would come out of it "squeaky clean."
Larry Hincker, director of university relations, said the department's problems included poor record keeping, inadequate segregation of duties, inadequate policies and procedures and lack of management oversight. Hincker would not be more specific.
The audit will be forwarded to the state's auditor of public accounts and the state police, but Hincker said the university doesn't anticipate any criminal charges being filed.
"It's fair to say that a lot of these were just system problems," he said.
Hincker said the allegations against the department included complaints by several workers that they were required to work extra hours without pay.
Since the investigation began, Tech has paid a total of $45,000 in back pay to four employees, he said.
Reached at his Blacksburg home Monday night, Engstrom said he hadn't seen a copy of the audit report, but understood that many of the problems occurred before he came to Tech in 1990.
He didn't want to comment on specifics about the case without seeing a copy of the report.
As director of culinary services, Engstrom oversaw the university's dining halls and the on-campus catering service. His annual salary was $58,800.
Engstrom was reassigned to a job in the office of student affairs after the investigation began. In April he resigned from the university to start East Coast operations for the San Francisco-based Bon Appetit company.
Hincker said the problems in the department stemmed from weak internal controls during a period when the department was undergoing constant change.
"It's a complex group in a complex university system," he said. "In this state of flux, our control systems had not yet caught up with new ways of doing business."
Engstrom said, "I would definitely agree with that."
Corrective actions have begun and will be completed by the middle of next year, Hincker said. They include preparing a comprehensive departmental policies and procedures manual, and expanding monthly reporting activities to the new director of culinary services, William E. Ryan III.
"The board is satisfied with the management's diligent response and sincere efforts to rectify the problems noted in the audit," read the board's release.
"We wish to commend them for the outstanding improvements to the dining programs over the past four years. We caution senior management that the size and scope of the dining program with almost 1,000 employees and a budget of nearly $15 million requires comprehensive accounting.
"Constant diligence is necessary to ensure such systems are adequate."
by CNB